REASONS FOR HOME OWNERSHIP
There are a number of personal and emotional reasons to buy a home. But there are also some strong financial reasons to make the investment.
Here are just a few of those reasons:
$8000 First Time Home Buyer Credit: This is free money that over 1.4 Million buyers have been able to use this year. Act NOW because you only have until November 30th, 2009 to close and fund on your new home to take advantage of this opportunity.
Increase Net Worth: Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $184,400.
A Big Tax Deduction: One of the largest tax deductions available is the amount of interest paid on a mortgage. In fact, a $150,000 home at a 5.50% interest rate can add up to approximately $8,000 in first year's interest. T his amounts to a significant savings – effectively reducing the amount of a homeowner's monthly mortgage payment.
Long-Term Appreciation: Over the last couple of years, home prices have corrected and become more affordable. While that's good news for potential buyers, it has overshadowed the long-term appreciation of a home's value. The reality is, despite market ups and downs between 1950 and 2002, US home prices appreciated at an annual growth rate of 4.8%. Even if you calculate a modest appreciation of 3%, a home purchased today for $150,000 will grow in value to $364,000 over 30 years.
Here are just a few of those reasons:
$8000 First Time Home Buyer Credit: This is free money that over 1.4 Million buyers have been able to use this year. Act NOW because you only have until November 30th, 2009 to close and fund on your new home to take advantage of this opportunity.
Increase Net Worth: Few things have a greater impact on net worth than owning a home. In a comparison of renters versus homeowners, the Federal Reserve Board of Consumer Finance found that the average net worth of renters was just $4,000 compared to homeowners at $184,400.
A Big Tax Deduction: One of the largest tax deductions available is the amount of interest paid on a mortgage. In fact, a $150,000 home at a 5.50% interest rate can add up to approximately $8,000 in first year's interest. T his amounts to a significant savings – effectively reducing the amount of a homeowner's monthly mortgage payment.
Long-Term Appreciation: Over the last couple of years, home prices have corrected and become more affordable. While that's good news for potential buyers, it has overshadowed the long-term appreciation of a home's value. The reality is, despite market ups and downs between 1950 and 2002, US home prices appreciated at an annual growth rate of 4.8%. Even if you calculate a modest appreciation of 3%, a home purchased today for $150,000 will grow in value to $364,000 over 30 years.
posted by John and Flo Martin at 2:55 AM
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